Why Michigan Car Accident Victims Need Unlimited Personal Injury Protection (PIP) Benefits
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Personal Injury Protection (PIP) is the core of Michigan No-Fault. It pays allowed medical care, work loss and related costs after a crash, without proving who was at fault. Unlimited PIP medical used to be on every policy. Since July 1, 2020, you can choose a lower medical cap—or, in narrow cases, opt out of PIP medical.
A cheaper premium is real. A catastrophic injury with a $50,000 or $250,000 cap is also real. Here is why unlimited PIP medical still matters after a Michigan car accident, and how it fits the rest of the policy. We are lawyers, not your insurance agent; confirm numbers with the carrier before you bind coverage.
Do You Have a Case?WHAT IS PERSONAL INJURY PROTECTION (PIP) COVERAGE?
PIP is first-party coverage. Typical pieces:
- Allowable medical and rehab expenses (up to the medical limit on the policy)
- Mileage to accident-related care
- Attendant care (family care is generally capped at 56 hours a week even on unlimited medical)
- Home and vehicle modifications, case management, guardianship costs, when reasonably necessary
- About 85% of work loss, subject to a statutory monthly cap, for up to three years
- Replacement services, traditionally up to $20 a day, for up to three years
- If the injured person dies, survivor’s-loss benefits for dependents, also subject to statutory caps and time limits
Property protection insurance (PPI) is separate. It generally pays for damage to other people’s property, often described as up to $1 million, including many legally parked vehicles.
Wage loss and replacement services were not replaced by the six medical options. Those options change PIP medical only. See how much coverage to buy.
HOW DID THE NO-FAULT REFORMS AFFECT PIP COVERAGE FOR MICHIGAN DRIVERS?
The 2019–2020 reforms let drivers trade premium for medical cap. That cut some bills. It also left seriously injured people exposed when treatment outruns $50,000, $250,000 or $500,000.
WHAT ARE THE SIX PERSONAL INJURY PROTECTION (PIP) MEDICAL OPTIONS?
- Unlimited allowable medical, including attendant care (still subject to medical necessity and the family-hour cap)
- $500,000 per injured person per accident
- $250,000
- $250,000 with exclusions for a named insured, spouse or resident relative who has other qualified health coverage (not Medicare or Medicaid) for auto injuries
- $50,000 (Medicaid households, with extra rules for spouse and resident relatives)
- No PIP medical if the named insured has Medicare Parts A and B and household members have qualified coverage for auto injuries
Medicare and ordinary health plans often do not match unlimited PIP (attendant care, many modifications, long custodial care). Opting out to save premium is a household-wide decision, not only a Medicare card.
WHY ARE UNLIMITED PIP BENEFITS IMPORTANT AFTER A MICHIGAN CAR ACCIDENT?
Unlimited medical is the only option that does not run out on dollar amount. Hospital care, surgery, rehab, drugs and years of attendant care for a brain or spinal injury can exceed half a million dollars.
A third-party lawsuit may pick up some of the gap if another driver is at fault and has liability limits left. That is not a substitute for your own medical PIP. Many crashes have no solvent at-fault policy that covers a lifetime of care.
CAN I LOWER PREMIUM COSTS WITHOUT REDUCING PIP COVERAGE?
Sometimes. Ask about a higher collision deductible, dropping collision on a high-mileage car, low-mileage or safe-driver discounts, and shopping carriers with the same medical level. Be cautious of advice to cut PIP medical or residual liability just to hit a price.
CONTACT ONE OF OUR EXPERIENCED MICHIGAN CAR ACCIDENT LAWYERS TODAY
If you or a loved one is injured in a Michigan traffic accident, we can help. Our lawyers have the skills and resources to pursue the compensation you deserve.
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